SM PRIME Holdings, Inc. will be opening the doors for its 67th mall in the country today (Dec. 15), allowing the company to further strengthen its presence in Southern Luzon.

In a statement, the listed property giant said SM Center Lemery will add 25,000 square meters (sq.m.) of gross floor area (GFA) to its portfolio, ending the year with a footprint of over 8 million sq.m. in the Philippines.

“Lemery has been a gateway to different attractions in Batangas, and with this, it’s been continually developing to meet the needs and standards of its residents and visitors. SM Center Lemery takes part in meeting these needs,” SM Prime President Jeffrey C. Lim said in a statement.

SM Center Lemery will be the company’s third mall in Batangas after SM City Batangas and SM City Lipa.

The newest shopping mall will have three floors offering a mix of services from retail and food tenants. It will also have staple brands located in other SM stores such as SM Hypermarket, BDO, Ace Hardware, Miniso, SM Appliance Center, and Watson’s among others.

SM Prime said around 90% of spaces at SM Center Lemery have already been leased out.

SM RETAIL, Inc. secured the green light from the Philippine Competition Commission (PCC) to acquire Goldilocks Bakeshop, Inc. after the SM Group committed to resolve possible issues on tenant discrimination and data protection.

In a statement on Tuesday, the antitrust body said it approved the transaction last Dec. 29, 2017, a day after the SM Group submitted an amended and final undertaking outlining its commitment to ensure a level playing field for Goldilocks’ competitors in its malls.

After the transaction, Goldilocks became a subsidiary of SM Retail, which is owned by SM Investments Corp. The Sy-led holding firm controls leading mall operator and developer SM Prime Holdings, Inc. (SMPHI).

The PCC’s Mergers and Acquisition Office (MAO) identified potential competition issues arising from the transaction in a Statement of Concern issued last Dec. 1.

The SM Group responded with a comprehensive undertaking on Dec. 22, which was enhanced following a series of hearings and discussions.

PCC had raised the “possibility of partial or total foreclosure in the supply of retail space in SM malls to competitors of Goldilocks after its acquisition by the SM Group.”

“While selection of tenants in a mall is market-driven and based on consumer preferences, a mall operator should not be allowed to discriminate mall tenants and lease applicants, especially those that compete with stores owned by the mall itself,” PCC Chairman Arsenio M. Balisacan was quoted in the statement as saying.

“Such discrimination or unfair treatment can come in the form of arbitrarily assigning competitor tenants to disadvantageous locations or unfavorable lease terms, which amounts to partial foreclosure. It can also come in the form of giving less favorable lease terms or completely refuse them lease space in the mall, which amounts to total foreclosure,” Mr. Balisacan added.

Another major concern determined by MAO is the “potential for the SM Group to share a competing mall tenant’s business information to Goldilocks, since the mall operator, through its point-of-sale (POS) system, has access to sales records of tenants.”

“Every mall-goer knows that location is important, while every businessman knows that data informs business strategy. In this transaction, what we want is fair opportunities for big and small players,” Mr. Balisacan said.

In its voluntary commitment, SMPHI pledged to give Goldilocks’ competitors “a fair shake in their lease at all times.”

The PCC noted an “information firewall” would ensure that “SM Retail/Goldilocks will not be able to use sales data or information of its competitors to its advantage.”

“The Commission appreciates SM’s move to make these voluntary undertakings — proof that PCC and the business community can work together to promote a culture of competition,” Mr. Balisacan said.

Over a five-year period, a team of experts will conduct periodical monitoring, including random inspections, of the parties.

If the monitoring team identifies violations or deficiencies during inspection, the SM Group will promptly address the concerns, the PCC said. Any breach of the conditions will subject SM to fines, additional remedies, and other measures available to the Commission.

SM Prime Holdings, Inc. is on track to achieve its five-year road map that targets to double revenues and profits by 2018, supported by its aggressive mall and residential expansion.

The holding firm for country’s richest man Henry Sy, Sr.’s property investments is currently on the last year of this five-year vision, which should see SM Prime book double the P16.3-billion net income and P59.8-billion revenue it had in 2013.

“We are on schedule to meet the five-year program unveiled in 2013. The growth will be driven by malls and residential operation complemented by offices and hotels and convention centers,” SM Prime said in a presentation to investors for the month of January.

For its mall expansion, SM Prime ended 2017 with a total of 9.3 million square meters (sq.m.) in gross floor area (GFA). Of this, 86% are covered by the 67 malls in the Philippines, while 14% come from seven malls in China.

This brings the company closer to its target of 10.5 million sq.m by end-2018.

SM Prime disclosed it has eight malls lined up in the following years, primarily located outside of Metro Manila. The company will be opening in the following locations: SM Center Imus in Cavite, SM City Legazpi in Albay, SM City Urdaneta in Pangasinan, SM City Telabastagan in San Fernando, Pampanga, SM City Ormoc in Leyte, SM City Dagupan, SM Moonwalk Parañaque, and SM Center Cabuyao in Laguna.

“New malls are geared towards provincial cities,” the company said.

SM Development Corp. (SMDC), which manages the company’s residential business, launched a total of 117,424 units across 54 projects under the primary home component in 2017. This marks a 15% increase in number of units year on year.

SMDC would have to launch 11 more projects in 2018 to hit its target of 65 projects by the end of 2018, for a total of 132,424 units.

For the leisure component, SMDC had a total of 16 projects by the end of last year with 2,363 units. The company looks to end 2018 with three more launches for a total of 19, composed of 2,600 units.

SM Prime’s commercial business had a total of six towers in 2017 covering 0.38 million sq.m., the same figure as in 2016. The company is currently constructing ThreeE-Com Center within the Mall of Asia complex, which will be completed in 2018. The tower will add a GFA of 130,000 sq.m., up to SM Prime’s target of 0.51 million sq.m. and seven towers by the end of the year.

Meanwhile, the company has already reached its target of 1,510 rooms and six project for hotels and convention centers. These include six hotels, four SMX Convention Centers, three Megatrade Halls with over 37,000 sq.m. of leasable space.

SM Prime’s earnings grew by 14.9% in the first nine months of 2017 to P20 billion, against the P17.5 billion in the first three quarters of 2016. The company’s revenues climbed by 12% to P64.7 billion in the same period.

PLDT, Inc.’s digital financial unit PayMaya Philippines is ramping up its presence in brick-and-mortar retail establishments, unveiling on Wednesday its partnership with The SM Store for cashless payments.

Under its partnership with the retail unit of the country’s largest shopping mall operator, PayMaya users can pay for their transactions just by opening the app and scanning Quick Response (QR) codes displayed at mobile pay lanes at The SM Store.

“SM has been an early partner of PayMaya as a load-up center for our customers, as well as a valued partner of our Smart Padala remittance service. This is a natural progression of our collaboration as we make it easier for our customers to use their PayMaya accounts anywhere they are in the country,” PayMaya Philippines President and Chief Executive Officer Orlando B. Vea said in a speech during the partnership’s official launch at SM Megamall in Ortigas.

For its part, the SM group acknowledged the partnership is a response to the changing landscape in the retail industry, as physical stores now have to compete with online shops.

“We now have to contend with social media, contend with influences like marketing, fast fashion, and services, and of course, online shopping. All of this is possible with the help of new technologies. In SM, we take pride in adapting to new technology and it would be a catalyst of change,” SM Store President Chelo C. Monasterio said during the event.

PayMaya has been launching a string of partnerships with various companies to pave the way for more cashless payments in the country.

Earlier this month, the company inked a deal with Golden Arches Development Corp., which operates the local chain of McDonald’s stores. PayMaya also partnered with Robinsons Retail Holdings, Inc. (RRHI) last November, allowing stores under the Gokongwei-led firm’s portfolio to use PayMaya’s QR scan-to-pay system for cashless payments.

On the other hand, PayMaya is also accepted for transactions in online marketplaces such as Lazada and Zalora, as well as in the online booking services of Philippine Airlines and Cebu Pacific.

GCash, the digital services arm of PLDT rival Globe Telecom, Inc., has also been ramping up expansion in physical retail establishments. GCash is an accepted mode of payment in Ayala-operated malls nationwide, as well as stores under RRHI such as Robinsons Department Store, Robinsons Supermarket, and merchant brands Topshop, Topman, Dorothy Perkins, among others.

Below is a statement released by Goldilocks President Richard L. Yee on the scrapped acquisition deal with SM Retail:

“I would like to confirm reports in the media that the partnership between Goldilocks and the SM group will no longer push through. This was a mutual decision, which was jointly agreed upon after friendly and productive dialogue. Since we first began talks with SM, so much has happened in the marketplace, and many changes have occurred in our respective business environments. This caused us to re-evaluate our position, and to arrive at a decision that we feel is best for both companies.

We would like to thank the SM group for their intent to partner with us. This is yet another validation of our efforts to strengthen our leadership position. To this end, we remain focused on our plans and strategies, which has allowed us to achieve double-digit growth in the past few years. We now have over 600 stores to serve our customers nationwide, and we will continue this expansion in order to be more accessible to our customers.

Goldilocks has always been committed to serving our customers with the best products wherever they may be and we remain steadfast in that commitment.”

SM RETAIL, Inc., a company owned by the country’s richest man Henry Sy, Sr., has scrapped plans to acquire Goldilocks Bakeshop, Inc., citing changes in the general business environment.

The two parties announced the dissolution of the deal in separate statements on Thursday, saying it was a mutual decision given the various changes in the marketplace since negotiations began.

“Regarding the proposed acquisition by SM Retail of Goldilocks, both SM and Goldilocks have jointly agreed not to pursue the transaction given changes in the general business environment,” SM Investments Corp. (SMIC) said in a statement issued Thursday.

For its part, Goldilocks said these changes “caused us to re-evaluate our position, and to arrive at a decision that we feel is best for both companies.”

“Meanwhile, Goldilocks remains focused on our plans and strategies. In the past few years, we had double-digit growth. We now have over 600 stores to serve our customers nationwide, and we will continue this expansion in order to be more accessible to our customers,” Goldilocks President Richard L. Yee said in a statement.

Talks for a possible partnership between the shopping mall operator and the bakeshop started in August 2017, when Goldilocks said that it sought an alliance with the SM group to further strengthen its brand.

The decision to call off the deal comes less than a month after the Philippine Competition Commission (PCC) gave SM Retail the go-signal to proceed with the transaction.

“They reviewed the circumstances surrounding Goldilocks, where they reassessed the commercial aspects of the transaction… It would seem like these changes in these circumstances happened after we approved the commitments,” PCC Commissioner Stella Luz A. Quimbo told reporters on the sidelines of a forum in Makati City yesterday.

The country’s antitrust body had earlier vented out competition concerns on the deal, citing the “possibility of partial or total foreclosure in the supply of retail space in SM malls to competitors of Goldilocks after its acquisition by the SM Group.”

SMIC is the parent of SM Prime Holdings, Inc. (SMPHI), the country’s leading mall operator and developer with a total of 67 malls.

Another major concern determined by PCC was the “potential for the SM Group to share a competing mall tenant’s business information to Goldilocks, since the mall operator, through its point-of-sale system, has access to sales records of tenants.”

In response, the SM group pledged that it will be giving Goldilocks’ competitors “a fair shake in their lease at all time.” SMPHI also promised not to give Goldilocks access to competitors’ information, which includes sales data captures by the point-of-sales system of mall tenants.

Ms. Quimbo noted the SM group did not ask for compromises with regards to the commitments the commission requested

“Of course it’s unfortunate that it has ended this way. We were actually quite pleased that they had volunteered to address the concerns. We have come to agreement at certain points but, however, obviously a business decision that we respect,” Ms. Quimbo said.